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Texas comptroller issues franchise tax guidance regarding vendor-funded incentives

For purposes of the Texas franchise tax, the Texas Comptroller of Public Accounts recently issued an internal memo from the Tax Policy Division to the Audit Division outlining the treatment of vendor-funded incentives (VFIs) received by retailers related to goods acquired for resale. VFIs are allowances, credits and rebates offered to retailers by wholesalers and manufacturers, and include items such as volume-based purchase price adjustments and sales-based incentives.

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